Correlation Between KTB Investment and KG Eco
Can any of the company-specific risk be diversified away by investing in both KTB Investment and KG Eco at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KTB Investment and KG Eco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KTB Investment Securities and KG Eco Technology, you can compare the effects of market volatilities on KTB Investment and KG Eco and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in KTB Investment with a short position of KG Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and KG Eco.
Diversification Opportunities for KTB Investment and KG Eco
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KTB and 151860 is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and KG Eco Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KG Eco Technology and KTB Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on KTB Investment Securities are associated (or correlated) with KG Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KG Eco Technology has no effect on the direction of KTB Investment i.e., KTB Investment and KG Eco go up and down completely randomly.
Pair Corralation between KTB Investment and KG Eco
Assuming the 90 days trading horizon KTB Investment Securities is expected to generate 0.81 times more return on investment than KG Eco. However, KTB Investment Securities is 1.24 times less risky than KG Eco. It trades about 0.01 of its potential returns per unit of risk. KG Eco Technology is currently generating about -0.08 per unit of risk. If you would invest 301,000 in KTB Investment Securities on October 13, 2024 and sell it today you would lose (500.00) from holding KTB Investment Securities or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTB Investment Securities vs. KG Eco Technology
Performance |
| Timeline |
| KTB Investment Securities |
| KG Eco Technology |
KTB Investment and KG Eco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and KG Eco
The main advantage of trading using opposite KTB Investment and KG Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment position performs unexpectedly, KG Eco can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KG Eco will offset losses from the drop in KG Eco's long position.| KTB Investment vs. AptaBio Therapeutics | KTB Investment vs. Daewoo SBI SPAC | KTB Investment vs. Dream Security co | KTB Investment vs. Microfriend |
| KG Eco vs. Korea Investment Holdings | KG Eco vs. Seers Technology | KG Eco vs. KTB Investment Securities | KG Eco vs. Ilji Technology Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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